Taiwan Passes Anti Money Laundering Laws For Crypto Transactions

The Legislative body of Taiwan has approved a set of amendments that have effectively banned anonymous cryptocurrency transactions on the insular country. While Taiwan passes anti money laundering amendments, the exchanges will have to adapt to this set of new rules. Banks have been given a strict set of rules, and also punitive penalty fees have been accorded.

Taiwan Passes Anti Money Laundering Amendments

Taiwan Passes Anti Money Laundering Amendments that will supposedly help the country to curb money laundering when transaction with cryptocurrencies. The legislation dictates an amended new set of rules for transactions that clearly specify that every part of a transaction in the country must be identified.
Because of this, the law now states that cryptocurrency exchanges and other business and institutions that use crypto as currency will need to establish real name KYC policies in order to keep operating in a normal fashion.
Before, peoples could use a pseudonym or fake name to make cryptocurrency transactions without having to indentify themselves. This will surely take some time to implement, but it will give more legitimacy and trust to the industry.

Consequences and Considerations

If some exchange refuses to implement this identification policy, banks are obliged to not serve them and to report them to the maximum financial authority on the country, the Financial Supervisory Commission (FSC). With this move, Taiwan modernizes its regulation and is getting closer to the worldwide set of standards towards cryptocurrencies, according to the ministry of justice.
The ministry of justice has declared that compliance makes the idea of dealing and trading cryptocurrency a lot more interesting and easy. In their own words:

A compliance culture and mindset is an important part of effectively fighting money laundering, and that culture and mindset can only be fostered through good habits and practices

The law has been amended before, but it still seems this has not helped too much to curb these kinds of crimes in the past. A new system of penalty fees was accorded, and people will have to pay more than 50,000 yuan if the one making the transaction is a non-financial institution, and more than 500,000 yuan if the transgressor is a financial institution. Finally, this rule will only apply when changing cryptocurrency for fiat money, so pure cryptocurrency exchanges won’t have problems.

Done Before, But Not Quite Well

This type of focus has been tried before in Korea, with little success: the people are required to turn his real name to exchanges, but there is no legal framework that can help exchanges and cryptocurrency startups enforce this rule. The real adoption of this system is quite low if done voluntarily.
In the meantime, Taiwan is also expecting to issue laws over ICO and other cryptocurrency related activities.

Related posts
BitcoinBitcoin NewsbtcusdBTCUSDCBTCUSDTETFNewsxbtusd

Bitcoin May Never Go Below $50k Once An ETF Is Approved, Declares On-Chain Analyst

Bitcoin may never drop below $50k asserts on-chain analyst Ki-Young Ju. But as usual, there are conditions that follow this possibility. In a tweet, Ju analyzed that Bitcoin could follow the same path that gold took in 2004 when the first…
BitcoinBitcoin NewsbtcusdBTCUSDCBTCUSDTNewsxbtusd

Quarterback Star Tom Brady Breaks Internet After Showing Interest In Bitcoin

Tom Brady, the American athlete who is widely regarded as the “greatest” quarterback in NFL history is the latest celebrity to show interest in the world’s most valued cryptocurrency Bitcoin. Brady who has a massive Twitter following of 1.9 million…
BitcoinBitcoin NewsbtcusdBTCUSDCBTCUSDTNewsxbtusd

Almost $200 Billion Worth Of Bitcoin Is Currently At Risk – Report Warns

A recently published 2021 crypto report by Opimas LLC, a finance-based management consultancy firm, has revealed that approximately 3,480,000 out of the world’s mined 18.5 million Bitcoin, stands vulnerable to attacks as a result of improper safekeeping. The 36-page report…